Rain Industries Limited - Management Commentary on Un-Audited Financial Results of the Company (Standalone, Consolidated and Segment) for the First Quarter ended March 31, 2026

Rain Industries held its Q1 2026 earnings Q&A session covering its Carbon, Advanced Materials, and Cement segments. The Carbon segment is benefiting from improved aluminium smelter utilisation, especially in India, with volumes expected to remain stable for the rest of 2026. Management highlighted growing synergies from integrating Carbon Distillation output into Advanced Materials, which is expected to drive revenue growth and margin expansion. Geopolitical issues in West Asia have only a limited impact (~5% Middle East CPC exposure), with volumes redirectable to other markets. The company has reduced gross debt by ~$200M over several years (Term Loan B outstanding at €310.6M, Senior Secured Notes at $450M) and is monitoring refinancing opportunities for high-cost debt (12.25%). Working capital has risen due to higher input prices and SEZ ramp-up, but management views this as cyclical. Battery Anode Materials (BAM) and Energy Storage Materials (ESM) development is underway with a demonstration plant commissioned in mid-2025, but no new products are expected at commercial scale in 2026. The European operations show early signs of recovery with improving energy markets and EU policy support for steel.